Monthly Market Outlook - October 2018 Equity & Fixed Income Outlook - ICICI Prudential Mutual Fund
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Monthly Market Outlook
October 2018
Equity & Fixed Income Outlook
1Global Indices Performance
10 9.1
8
6 5.5
Most global indices
Index Returns (%)
4 3.5 3.5
1.9 1.6 1.4 1.3 experienced significant
2 1.0 0.9
0.2 gains in the month of
0 September,
-2 -0.4 -0.5 -0.7 -0.9 Indian equities suffered
-4 due to concerns on the
-6 domestic front
-8 -6.3
Germany - DAX Index; China - SSE Composite Index; France - CAC 40 Index; Japan - Nikkei; Europe - Euronext 100; Hong Kong - HangSeng; US - Dow Jones; Singapore - Strait Times; Russia - RTS Index; Indonesia
- Jakarta Composite Index; U.K. - FTSE; South Korea - Kospi; Brazil - Ibovespa Sao Paulo Index; Indonesia – Jakarta Composite Index; Switzerland – Swiss Market Index; Taiwan – Taiwan Stock Exchange Corporation;
India – S&P BSE Sensex; Returns in % terms. Data Source: MFI; Returns are absolute returns for the PRI variant of the index calculated between August 31, 2018 – September 28, 2018.
2Sector and Market-cap based Index
5.0
0.5 • Sentiment in the market turned
0.0 negative on depreciating rupee
Index Returns (%)
-0.4
-1.5 and rising crude prices
-5.0 -3.9
-5.8
-10.0 -7.4 • Worries about worsening CAD
-9.9 -9.9 -9.9
-10.9 -11.8 -11.8
-15.0 -12.8 -13.1 -13.4
• Finance stocks remained under
-20.0 pressure led mainly by the decline
-20.5 in NBFCs
-25.0
• IT index gained on the back of
rupee depreciation
All indices are of S&P BSE and carry the prefix of S&P BSE; Abbreviated CD - S&P BSE Consumer Durables; CG - S&P BSE Capital Goods; FMCG - S&P BSE Fast Moving Consumer Goods; HC
- S&P BSE Health Care; Infra. - S&P BSE India Infrastructure; IT - S&P BSE Information Technology. Source: MFI; Returns are absolute returns for the PRI variant of the index calculated between 3
August 31, 2018 – September 28, 2018.Indian Equity and Debt Markets in Sept-18
Factors affecting both debt and equity markets
Depreciating Rupee Widening Fiscal Deficit
Decline in NBFCs on concerns
S&P BSE Sensex was
Higher Crude Oil Prices down 6.3% in Sept- 2018;
about liquidity and credit quality
Markets would remain watchful of: G-Sec yields touched a
high of 8.18% mid-month
US rate hikes – the US Fed Events in the run-up to the in Sept 2018 before
could raise rates in Dec again elections 2019
finally settling at 8.02%
Rationalisation of bond-buying Escalating tensions due to
programme by central banks on-going trade-wars
Source: BSE India and CRISIL Research; NBFCs – Non-Banking Financial Companies; Fed – US Federal Reserve
4Equity Outlook
Stay Cautious
5Our Equity Recommendations
• For pure equity exposure, prefer largecap Schemes
• Remain positive on exports and services theme
• For long-term equity exposure, prefer midcap and smallcaps through SIP
• Recommend asset allocation to benefit from volatility
6Prefer Largecaps over Mid- and Smallcaps
60 Largecaps have relatively better valuations 1 Month
Index
(%)
55 53.7
S&P BSE Sensex -6.3
50
S&P BSE MID CAP -12.5
P/E valuations
45 S&P BSE
43.4 S&P BSE SMALL CAP -16.1
40 Midcap Index
36.6
35
33.2
30
Near-term outlook for
S&P BSE
Sensex
midcaps and smallcaps
25 23.8
22.3 23.9 continues to be
20 cautious; we maintain
our largecap stance
Jul-18
Dec-17
Oct-17
Mar-18
Aug-18
Apr-18
Sep-18
Nov-17
May-18
Jun-18
Feb-18
Sep-17
Jan-18
Source: BSE India; Data as of September 28, 2018; P/E – Price to Earnings; Past performance may or may not be sustained in future.
7Why ICICI Prudential Bluechip Fund?
(An open ended equity scheme predominantly investing in large cap stocks.)
Adopts “buy & hold” approach in
large-cap companies with proven
track record, quality management,
good growth potential.
Closing AUM `18,966.3 crore
Average No. of
1.64 58
Takes aggressive positions in high Dividend Yield stocks
conviction stocks with an aim to
generate alpha. Average Top 10
24.87 43.10%
P/E ratio Stock Holdings
Average Top 10
5.04 74.25%
P/B ratio Sectors
Follows bottom-up approach
for stock selection
Data as of Sept 28, 2018; Past performance may or may not sustain in the future. The portfolio of the scheme is subject to changes within the provisions of the Scheme Information Document of
the Scheme. AUM – Assets Under Management 8Currency and Crude:
Supporting the export theme
Rupee Depreciation Rising Crude prices
75
84 82.7
73.0
73 80 79.6
71 70.2 76
INR / USD
69 72 70.5
66.9 67.8 71.8
67 68
65 64.9 64
62.6
63 60
Apr-18
May-18
Mar-18
Jul-18
Aug-18
Jun-18
Jan-18
Feb-18
Sep-18
Mar-18
Aug-18
Apr-18
May-18
Jul-18
Jun-18
Jan-18
Feb-18
Sep-18
Source: CRISIL Research; Data as of September 30, 2018
9ICICI Prudential Exports and Services Fund
EXPORT-ORIENTED SECTORS The scheme is well
diversified across different
sectors and gives a
broader play on Indian
PHARMACEUTICALS & economy. Also, the flexibility
HEALTHCARE SERVICES to move portfolios from
SOFTWARE
Export oriented sectors to
domestic oriented sector
makes this scheme suitable
CHEMICALS for the long-term.
TEXTILES
AUTO ANCILLARIES
The portfolio of the scheme is subject to changes within the provisions of the Scheme Information document of the Scheme. The stock(s)/sector(s) mentioned in this slide do not constitute any
recommendation and ICICI Prudential Mutual Fund may or may not have any future position in this stock(s). 10Manufacturing outlook
S&P BSE India
250 Manufacturing Index 231.4
Earnings
The Government aims to increase
200 the share of the manufacturing
sector in India’s GDP to 25% by
Earnings (in Rs)*
150 S&P BSE Sensex 2025, from 18% at present.
116.7
Earnings
100
Therefore, we expect earnings of
manufacturing sector companies to
increase going forward
50
0
Aug-16
Aug-17
Aug-18
Dec-16
Dec-17
Jun-16
Feb-17
Jun-17
Feb-18
Apr-18
Jun-18
Oct-16
Oct-17
Apr-16
Apr-17
03-Sep-18
05-Sep-18
07-Sep-18
11-Sep-18
14-Sep-18
18-Sep-18
21-Sep-18
25-Sep-18
27-Sep-18
Source: BSE India, Citi Research, ibef.org ; Data as of Sept 27, 2018. *Earnings rebased to Rs 100; Past performance may or may not be sustained in future.
11ICICI Prudential Manufacture in India Fund
(An open ended equity scheme following manufacturing theme)
• ICICI Prudential Manufacture in India Fund gives an opportunity to
participate in the diverse themes of manufacturing
• Contribution of Manufacturing to GDP has been improving
• The Scheme can go overweight in the following sub-themes of the
manufacturing sector based on various economic parameters:
Exports oriented manufacturing
Domestic consumption
Domestic capex manufacturing
• Scheme will follow market cap agnostic approach of investing
The portfolio of the scheme is subject to changes within the provisions of the Scheme Information document of the Scheme. The stock(s)/sector(s) mentioned in this slide do not constitute any
recommendation and ICICI Prudential Mutual Fund may or may not have any future position in this stock(s). 12Valuation
EquityIndex
Valuation Index
170
150 Book Partial Profits
130
Equity valuations show that
115.37 the market valuations are in
Incremental Money to Debt
110
the zone where investors are
Asset Allocation recommended to invest in
funds with low net equity
90
Invest in Equities levels within the dynamic
asset allocation fund category.
70
Aggressively invest in Equities
50
Sep-05
Sep-06
Sep-07
Sep-08
Sep-09
Sep-10
Sep-11
Sep-12
Sep-13
Sep-14
Sep-15
Sep-16
Sep-17
Sep-18
Equity Valuation index is calculated by assigning equal weights to Price-to-Earnings (PE), Price-to-Book (PB), G-Sec*PE and Market Cap to GDP ratio. G-Sec – Government Securities.
GDP – Gross Domestic Product; Asset Allocation – Schemes that invest both in equity and fixed income
Data as of September 28, 2018; Past Performance may or may not be sustained in future. None of the aforesaid recommendations are based on any assumptions. These are purely for
reference and the investors are requested to consult their financial advisors before investing. 13Our Asset Allocation Hybrid schemes
These schemes aim to benefit from volatility and manage equity exposure based on valuations.
ICICI Prudential
ICICI Prudential Equity & Debt Fund
ICICI Prudential Multi-Asset Fund
Balanced
ICICI Prudential Advantage Fund
Equity Savings
ICICI Prudential Regular
Fund
Savings Fund*
Aggressive
Hybrid
Multi Asset
Allocation
Dynamic Asset
Allocation or
Equity Balanced
Conservative Savings Net Equity–65-80%
Advantage Fund
Min of 10% in each of
Hybrid Fund Fund
the three asset classes
Net equity - 30-80%
Net Equity–15-50%
Net Equity–10-25%
The asset allocation and investment strategy will be as per the Scheme Information Document, *This scheme will attract debt taxation.
14Our Equity Scheme Recommendations
Invests in large-cap stocks
ICICI Prudential
and follows a benchmark
Bluechip Fund
hugging approach.
Pure Equity
The scheme
ICICI Prudential Invests in stocks across ICICI Prudential
predominantly invests in
Multicap Fund market capitalisation Midcap Fund
SIP Recommendations
midcap stocks
ICICI Prudential Follows a value investment
Value Discovery Fund strategy. ICICI Prudential The scheme predominantly
Smallcap Fund invests in Smallcap stocks
ICICI Prudential For investors looking at
Exports and Services Fund tactical allocation. The scheme invests in
Thematic/Sectoral
ICICI Prudential
largecap as well as midcap
Large & Mid Cap Fund
ICICI Prudential stocks
For investors looking at
Pharma Healthcare and
tactical allocation.
Diagnostics (P.H.D) Fund
ICICI Prudential For investors looking at
Manufacture In India Fund tactical allocation.
The asset allocation and investment strategy will be as per the Scheme Information Document
15Fixed Income Outlook
Tightening Liquidity –
Stay in Low Duration
16Our Outlook on Fixed Income
• Maintain cautious approach and remain watchful of:
− Higher Crude Prices
− Rising Trade Protectionism
− Unwinding of QE by central banks
− Commitment towards domestic fiscal discipline and consolidation
− Upside risks on inflation
QE – Quantitative Easing
17October RBI Monetary Policy Review –
Pause in rate hikes
RBI Repo Rate action since 2013
RBI kept repo rate unchanged at
Jan-13 Mar-13 May-13
CUT 6.5% in its Oct 5, 2018 MPC meeting
7.75 7.5 7.25
due to :
Sep-13 Oct-13 Jan-14
HIKE
7.5 7.75 8 • Lower inflationary pressures
Jan-15 Mar-15 Jun-15 Sep-15
CUT • Rupee Instability
7.75 7.5 7.25 6.75
Apr-16 Oct-16 Aug-17 • Higher crude oil prices
CUT
6.5 6.25 6
• Possibility of fiscal slippage at
Jun-18 Aug-18
HIKE centre or state level
6.25 6.5
Source: RBI; Data as of Oct 5, 2018; bps – basis points: MPC – Monetary Policy Committee
18Rates and Yields Across the World
Interest rates (%) 10-yr G-Sec Yield (%)
Sep-17 Sep-18 Sep-17 Sep-18
India 6 6.5 India 6.66 8.02
US 1.25 2.25 US 2.33 3.06
Eurozone 0 0 Eurozone 0.46 0.47
China 4.35 4.35 China 3.62 3.63
Japan -0.063 -0.064 Japan 0.06 0.12
The US rate hike and subsequent rise in the US Treasury yields has had a significant impact on global liquidity.
Indian markets have had sharp reactions to the US rate-hikes as seen in the currency depreciation, and the
subsequent increase in the 10-yr G-sec yield.
Source: CRISIL Research; Interest rates as on Sept 30, 2017 and Sept 30, 2018
19Tightening Liquidity –
Credit Growth vs Deposit Growth
20%
16% 15.90%
13.50%
12% 11.10% Credit growth has been
% (Y-o-Y)
surpassing deposit growth
8% 9.00% since November 2017,
7.36% 8.60%
with December 2017 seeing
4% 4.10% the widest gap between the
two at 7.36%
0%
Sep-18
Apr-15
Jul-15
Apr-16
Jul-16
Apr-17
Jul-17
Apr-18
Jul-18
Oct-15
Oct-16
Oct-17
Jan-16
Jan-17
Jan-18
Aggregate Deposit Growth (% Y-o-Y) Bank Credit Growth (% Y-o-Y)
Source: RBI; Data as on September 14, 2018
20Tightening Liquidity –
Increase in currency in circulation
5%
4.1%
4%
3.2%
3%
2% 1.4%
1.3%
1.4% As of September 2018,
1% 0.6% 0.8% currency in circulation
(MoM%) is higher than the
0% 5-year average
-0.1%
-1% -0.6% -0.5%
-1.1%
-2% -1.3%
Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18
2018 5Y Avg
Source: Morgan Stanley Research, Data as of September 21, 2018
21FPI – Sellers in the Debt market
FPI selling in the bond
FPI buying / selling of INR bonds markets has further
300 253.55 256.85 aggravated the pressure on
the currency
200 157.01 160.63
Amount (in Rs. bn)
100
0
-100
-101.98
-200
-211.51 -196.54
-300
Source: RBI: Data as of September 30, 2018; FPI – Foreign Portfolio Investor
22Tightening Liquidity –
RBI intervention
15 FX Intervention (Spot+ Forward) in US$ Bn
10
5
In USD bn
0 RBI Continued to intervene
in the forex market to
-5 reduce the forex volatility
-10 Negative shows - RBI sold dollars
-15
Oct-16
Oct-17
Apr-18
Jul-16
Apr-17
Jul-17
Jul-18
Jan-17
Source: Morgan Stanley Research, Data as of July 31, 2018; FX – Foreign exchange Jan-18
23Inflationary Pressures
Inflationary pressures in the economy have started to cool off largely on account
of decline in food inflation
7
6 6.07
5.40
5 In its October Monetary
CPI Inflation (%)
4.83 4.92
Policy Committee meeting,
4 3.89 the RBI revised its CPI
3 3.69 inflation projection
2
downwards to
1.46 3.9 – 4.5% for 2HFY19 and
1 4.8% in Q1FY20.
0
Dec-15
Dec-16
Dec-17
Apr-18
Aug-18
Jun-15
Aug-15
Oct-15
Apr-16
Jun-16
Aug-16
Oct-16
Apr-17
Jun-17
Aug-17
Oct-17
Jun-18
Feb-16
Feb-17
Feb-18
Source: RBI; Data as on Aug 31, 2018; CPI – Consumer Price Index; 2HFY19 – Second half of FY19; Q1FY20 – First Quarter of FY20
24Debt Valuation Index
10
9 Aggressively in We recommend investors to
High Duration invest in Ultra Low / Low
8
High Duration Duration schemes or accrual
7 schemes such as ICICI
6 Prudential Credit Risk Fund.
Moderate Duration
5 For those investors who aim to
4 benefit from volatility we
Low Duration recommend investment in
3
ICICI Prudential All Seasons
2 1.11 Bond Fund.
Ultra Low Duration
1
Mar-16
Mar-17
Mar-18
May-16
Nov-15
Jul-16
May-17
Nov-16
Jul-17
May-18
Nov-17
Jul-18
Sep-15
Jan-16
Sep-16
Jan-17
Sep-17
Jan-18
Sep-18
Debt Valuation Index considers WPI, CPI, Sensex YOY returns, Gold YOY returns and Real estate YOY returns over G-Sec yield, Current Account Balance and Crude Oil Movement for
calculation. WPI – Wholesale Price Index; CPI – Consumer Price Index. None of the aforesaid recommendations are based on any assumptions. Data as of September 28, 2018 25Duration
Our Debt Recommendations
Dynamic Duration
The scheme invests with
Short
ICICI Prudential An All-season scheme
the aim to maintain a short ICICI Prudential
Short Term Fund which invests across
duration All Seasons Bond
duration based on an
Fund
in-house CAD model
Duration
The scheme invests with
ICICI Prudential
Low
the aim to maintain a low
Savings Fund
duration
Floater Fund
The schemes invests with The scheme invests
ICICI Prudential
Duration
Medium
ICICI Prudential the aim to maintain a predominantly in floating-
Floating Interest Fund
Medium Term Bond Fund medium duration with rate instruments
focus on accrual income
The scheme invests
The scheme invests with
Ultra Short
Credit Risk
Duration
predominantly in AA and
ICICI Prudential the aim to maintain a low ICICI Prudential
below rated credit
Ultra Short Term Fund duration with focus on Credit Risk Fund
instruments with a Hold-
accrual income
till-maturity approach
The asset allocation and investment strategy will be as per the Scheme Information Document. CAD: Current Account Deficit
26Update on Key Schemes
27ICICI Prudential Balanced Advantage Fund (An open ended
dynamic asset allocation fund):Aim to Benefit From Market Volatility
• ICICI Prudential Balanced Advantage Fund (BAF) seeks to remove
the psychological barrier (Greed & Fear) for its investors.
• The Scheme aims to follow a buy-low and sell-high strategy.
Stock Asset Derivative
Selection Allocation Strategy
Net Equity Level Derivative
Blend of Large and Range 30-80% Exposure for
Mid Cap Stocks based on In-House Hedging / Portfolio
P/BV Model Rebalancing
The portfolio of the scheme is subject to changes within the provisions of the Scheme Information document of the scheme.
28SIP for the Long Run
SIP
ICICI Prudential Large & Midcap Fund
(An open ended equity scheme investing in both largecap and midcap stocks)
ICICI Prudential Midcap Fund
(An open ended equity scheme predominantly investing in mid cap stocks)
ICICI Prudential Smallcap Fund
(An open ended equity scheme predominantly investing in small cap stocks)
29ICICI Prudential Ultra Short Term Fund
(An open ended ultra-short term debt scheme investing in instruments such that
the Macaulay Duration* of the portfolio is between 3 months and 6 months)
1.2
Low Duration Play - Anticipating
1 0.96 0.98
Modified duration (in yrs)
volatility, the scheme has reduced its
modified duration over the last one year to
0.8 0.78 0.26 yrs (as on September 30, 2018)
0.6
0.4 Margin of Safety - The Yield To Maturity
0.33 0.26 (YTM) is at 8.98% as on September 30,
2018, 248 bps higher than the repo rate.
0.2
Aug-17
Mar-18
Aug-18
Oct-17
Nov-17
Dec-17
Apr-18
May-18
Jun-18
Jul-18
Sep-17
Jan-18
Feb-18
Sep-18
Data as of September 30, 2018; bps - basis points; Past performance may or may not be sustained in future.; *The Macaulay Duration is the weighted average term to maturity
of the cash flows from a bond. The weight of each cash flow is determined by dividing the present value of the cash flow by the price. 30Accrual based schemes investment process
Well Researched Credit Universe
• Based on various filters, qualitative and
quantitative research The scheme has an Independent credit
evaluation, approval and monitoring process
Broadened Exposure which is not solely relying on the Fund
Manager judgement to invest in a paper.
• Mitigating concentration risk by diversification
The scheme focuses on direct origination*
Managing Duration Risk which helps in alpha generation and
monitoring.
• Clearly defined modified duration range
Strict Internal Limits at Issuer Level and
rating level
The asset allocation and investment strategy will be as per Scheme Information Document. *Direct origination means no involvement of intermediaries.
31ICICI Prudential Credit Risk Fund
(An open ended debt scheme predominantly investing in AA and below rated corporate bonds)
The scheme portfolio is well-diversified across a large number of securities which
reduces risk pertaining to high exposure in a single security.
10.16
Yield to Maturity
% Aims to invest in well researched
corporate bonds
89 No. of securities in the scheme portfolio
Average exposure to a single Aims to generate alpha from any
1.06% potential credit upgrades
security in the portfolio
Highest exposure to single
5.03% Aims to maintain stable accrual income
security in the portfolio
with Hold-to-Maturity approach
Exposure (as % of NAV) to the top 10
31.3%
holdings in the portfolio
Data as of September 28, 2018; The asset allocation and investment strategy will be as per the Scheme Information Document. The portfolio of the scheme is subject to
changes within the provisions of the Scheme Information document. 32ICICI Prudential All Seasons Bond Fund
(An open ended dynamic debt scheme investing across duration)
ICICI Prudential All Seasons Bond Fund aims to perform in all market conditions
All Seasons Investment
Avenue
10 9.0%
9 8.50% 9
Modified Duration (in yrs)
8 8.5% Uses an In-House CAD model
10-yr G-Sec yields (%)
8.02% to manage duration between
7 8.0%
6.59 1-10 yrs
6 5.73
5.95
5 7.5%
4 7.34% 7.44%
7.0%
3 Aims to benefit from Volatility
2 6.53% 6.5%
1 6.24% 1.11
0 6.0%
Tactical Allocation between
Jul-14
May-15
Dec-14
Jun-17
Apr-18
Sep-18
Oct-15
Aug-16
Jan-17
Mar-16
Nov-17
G-sec and Corporate
Securities
Modified Duration G Sec (RHS)
Data as of September 28, 2018; The asset allocation and investment strategy will be as per the Scheme Information Document. Past performance may or may not be sustained in
future. ^rounded off. CAD: Current Account Deficit. 33Our Equity Schemes
Scheme Name Type of Scheme
ICICI Prudential Bluechip Fund An open ended equity scheme predominantly investing in large cap stocks.
ICICI Prudential Large & Mid Cap Fund An open ended equity scheme investing in both large cap and mid cap stocks.
ICICI Prudential Midcap Fund An open ended equity scheme predominantly investing in mid cap stocks.
ICICI Prudential Smallcap Fund An open ended equity scheme predominantly investing in small cap stocks.
ICICI Prudential Value Discovery Fund An open ended equity scheme following a value investment strategy.
ICICI Prudential Multicap Fund An open ended equity scheme investing across large cap, mid cap, small cap stocks.
ICICI Prudential Exports and Services Fund An open ended equity scheme following Exports & Services theme.
ICICI Prudential Manufacture in India Fund An open ended equity scheme following manufacturing theme
ICICI Prudential Pharma Healthcare and
An Open Ended Equity Scheme following Pharma, Healthcare, Diagnostic and allied Theme
Diagnostics (P.H.D) Fund
34Our Hybrid Schemes
Scheme Name Type of Scheme
ICICI Prudential Balanced Advantage Fund An open ended dynamic asset allocation fund
ICICI Prudential Regular Savings Fund An open ended hybrid scheme investing predominantly in debt instruments
An open ended scheme investing in equity, arbitrage and
ICICI Prudential Equity Savings Fund
debt.
An open ended hybrid scheme investing predominantly in equity and equity related
ICICI Prudential Equity & Debt Fund
instruments
An open ended scheme investing in Equity, Debt, Gold/Gold ETF/units of REITs & InvITs
ICICI Prudential Multi-Asset Fund
and such other asset classes as may be permitted from time to time.
35Our Debt Schemes
Scheme Name Type of Scheme
An open ended ultra-short term debt scheme investing in instruments such that the Macaulay duration
ICICI Prudential Ultra Short Term Fund
of the portfolio is between 3 months and 6 months.
An open ended short term debt scheme investing in instruments such that the Macaulay duration of
ICICI Prudential Short Term Fund
the portfolio is between 1 Year and 3 Years.
An open ended low duration debt scheme investing in instruments such that the Macaulay duration of
ICICI Prudential Savings Fund
the portfolio is between 6 months and 12 months.
An open ended medium term debt scheme investing in instruments such that the Macaulay duration
ICICI Prudential Medium Term Bond Fund of the portfolio is between 3 Years and 4 Years. The Macaulay duration of the portfolio is 1 Year to 4
years under anticipated adverse situation.
ICICI Prudential Credit Risk Fund An open ended debt scheme predominantly investing in AA and below rated corporate bonds.
An open ended debt scheme predominantly investing in floating rate instruments (including fixed rate
ICICI Prudential Floating Interest Fund
instruments converted to floating rate exposures using swaps/derivatives).
ICICI Prudential All Seasons Bond Fund An open ended dynamic debt scheme investing across duration.
36Riskometers
ICICI Prudential Multi-Asset Fund is suitable for investors who are seeking*:
Long term wealth creation
An open ended scheme investing in at least three asset classes with minimum allocation of 10% to each asset class.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
ICICI Prudential Equity & Debt Fund is suitable for investors who are seeking*:
Long term wealth creation solution
A balanced fund aiming for long term capital appreciation and current income by investing in equity as well as fixed
income securities.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
ICICI Prudential Balanced Advantage Fund is suitable for investors who are seeking*:
Long term wealth creation solution
An equity fund that aims for growth by investing in equity and derivatives.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
37Riskometers
ICICI Prudential Bluechip Fund is suitable for investors who are seeking*:
Long term wealth creation
An open ended equity scheme predominantly investing in large cap stocks.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for
them
ICICI Prudential Value Discovery Fund is suitable for investors who are seeking*:
Long term wealth creation
An open ended equity scheme following a value investment strategy
*Investors should consult their financial advisers if in doubt about whether the product is suitable for
them
ICICI Prudential Large & Mid Cap Fund is suitable for investors who are seeking*:
Long term wealth creation
An open ended equity scheme investing in both largecap and mid cap stocks
*Investors should consult their financial advisers if in doubt about whether the product is suitable for
them
38Riskometers
ICICI Prudential Equity Savings Fund is suitable for investors who are seeking*:
Long term wealth creation
An open ended scheme that seeks to generate regular income through investments in fixed income securities,
arbitrage and other derivative strategies and aim for long term capital appreciation by investing in equity and
equity related instruments.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
ICICI Prudential Exports and Services Fund is suitable for investors who are seeking*:
Long term wealth creation
An open-ended equity scheme that aims for growth by predominantly investing in companies belonging to
Exports & Services industry.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
ICICI Prudential Multicap Fund is suitable for investors who are seeking*:
Long term wealth creation
An open ended equity scheme investing across largecap, mid cap and small cap stocks.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
39Riskometers
ICICI Prudential Regular Savings Fund is suitable for investors who are seeking*:
Medium to long term regular income solution
A hybrid fund that aims to generate regular income through investments primarily in debt and money market
instruments and long term capital appreciation by investing a portion in equity.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
ICICI Prudential Credit Risk Fund is suitable for investors who are seeking*:
Medium term savings
A debt scheme that aims to generate income through investing predominantly in AA and below rated
corporate bonds while maintaining the optimum balance of yield, safety and liquidity
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
ICICI Prudential Medium Term Bond Fund is suitable for investors who are seeking*:
Medium term savings
A debt scheme that invests in debt and money market instruments with a view to maximize income while
maintaining optimum balance of yield, safety and liquidity
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
40Riskometers
ICICI Prudential Smallcap Fund is suitable for investors who are seeking*:
Long Term wealth creation
An open ended equity scheme that seeks to generate capital appreciation by predominantly investing in equity
and equity related securities of small cap companies.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
ICICI Prudential Short Term Fund is suitable for investors who are seeking*:
Short term income generation and capital appreciation solution
A debt fund that aims to generate income by investing in a range of debt and money market instruments of
various maturities.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
ICICI Prudential All Seasons Bond Fund is suitable for investors who are seeking*:
All duration savings
A debt scheme that invests in debt and money market instruments with a view to maximize income while
maintaining optimum balance of yield, safety and liquidity
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
41Riskometers
ICICI Prudential Floating Interest Fund is suitable for investors who are seeking*:
Short term savings
An open ended debt scheme predominantly investing in floating rate instruments
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
ICICI Prudential Ultra Short Term Fund is suitable for investors who are seeking*:
Short term regular income
An open ended ultra-short term debt scheme investing in a range of debt and money market instruments
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
ICICI Prudential Midcap Fund is suitable for investors who are seeking*:
Long Term wealth creation
An open-ended equity scheme that aims for capital appreciation by investing in diversified mid cap companies.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
42Riskometers
ICICI Prudential Savings Fund is suitable for investors who are seeking*:
Short term savings
An open ended low duration debt scheme that aims to maximize income by investing in debt and money market
instruments while maintaining optimum balance of yield, safety and liquidity
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
ICICI Prudential Manufacture in India Fund is suitable for investors who are seeking:*
Long term wealth creation
An open ended equity Scheme that aims to provide capital appreciation by investing in equity and equity
related securities of companies engaged in manufacturing theme.
*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) FUND is suitable for investors who are seeking:*
Long term wealth creation
An equity Scheme that predominantly invests in pharma, healthcare, hospitals, diagnostic, wellness and allied
companies
*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
43Disclaimer for Mutual Funds
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
All figures and other data given in this document are dated. The same may or may not be relevant at a future date. The AMC takes no responsibility of updating any
data/information in this material from time to time. The information shall not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or
to the media or reproduced in any form, without prior written consent of ICICI Prudential Asset Management Company Limited. Prospective investors are advised to consult their
own legal, tax and financial advisors to determine possible tax, legal and other financial implication or consequence of subscribing to the units of ICICI Prudential Mutual Fund.
Past Performance may or may not be sustained in future.
Disclaimer: In the preparation of the material contained in this document, ICICI Prudential Asset Management Company Ltd. (the AMC) has used information that is publicly
available, including information developed in-house. The stock(s)/sector(s) mentioned in this slide do not constitute any recommendation and ICICI Prudential Mutual Fund may or
may not have any future position in this stock(s). Some of the material used in the document may have been obtained from members/persons other than the AMC and/or its
affiliates and which may have been made available to the AMC and/or to its affiliates. Information gathered and material used in this document is believed to be from reliable
sources. The AMC however does not warrant the accuracy, reasonableness and / or completeness of any information. We have included statements / opinions /
recommendations in this document, which contain words, or phrases such as “will”, “expect”, “should”, “believe” and similar expressions or variations of such expressions, that
are “forward looking statements”. Actual results may differ materially from those suggested by the forward looking statements due to risk or uncertainties associated with our
expectations with respect to, but not limited to, exposure to market risks, general economic and political conditions in India and other countries globally, which have an impact on
our services and / or investments, the monetary and interest policies of India, inflation, deflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or
other rates or prices etc. ICICI Prudential Asset Management Company Limited (including its affiliates), the Mutual Fund, The Trust and any of its officers, directors, personnel and
employees, shall not liable for any loss, damage of any nature, including but not limited to direct, indirect, punitive, special, exemplary, consequential, as also any loss of profit in
any way arising from the use of this material in any manner. Further, the information contained herein should not be construed as forecast or promise or investment advice. The
recipient alone shall be fully responsible/are liable for any decision taken on this material.
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